Resources

Facebook grows to 901 million, Instagram details in S-1 filing

(CBS News) Facebook updated figures for its S-1 filing with the Securities and Exchange Commission (SEC). New information about the social network's purchase of Instagram and AOL patents were also revealed.

The social network now reports 901 million monthly active users, 300 million photos uploaded per day and 125 billion friendships. The filing also shows that 488 million people access Facebook via mobile products.

Instagram was also mentioned several times in the new filing, including as a risk factor for investors.

"As part of our business strategy, we have made and intend to make acquisitions to add specialized employees, complementary companies, products, or technologies. For example, in April 2012, we entered into an agreement to acquire Instagram, Inc., the closing of which is subject to closing conditions and regulatory clearance."

The filing revealed that if the deal with Instagram fails, Facebook will have to pay the photo-sharing app a $200 million termination fee "if governmental authorities permanently enjoin or otherwise prevent the completion of the merger or if either party terminates the agreement after December 10, 2012."

Instagram fans will take comfort in the fact that Facebook essentially says it plans to leave the photo-sharing app alone. Stating they "plan to maintain Instagram's products as independent mobile applications to enhance [Facebook's] photos product offerings and to enable users to increase their levels of mobile engagement and photo sharing."

Facebook also mentioned the recent purchase of AOL patents from Microsoft, as well as Instagram, as a business development strategy that may have an affect on market performance.

The social network expects to spend "approximately $1.6 billion to $1.8 billion" in 2012. Parts of the expenses are directly attributed to the $300 million in total costs associated with purchasing Instagram and $550 million to purchase the AOL patents from Microsoft.

It was reported Monday that Facebook bought 650 AOL patents from Microsoft. The software giant paid AOL $1 billion for a total of 925 patents. The deal is to ensure that neither Microsoft nor Facebook will sue each other over AOL patents. The relationship between the two companies has been mostly harmonious. Microsoft made an early investment in Facebook in 2007, paying $240 million for a 1.6 percent stake in the social network.

Facebook filed for its IPO on February 1, with Morgan Stanley as its lead underwriter and the ticker symbol FB. The social network has 901 million users and reported $3.7 billion in revenue in 2011.